Genting Posts 2018 Results

March 29, 2019

Genting Hong Kong posted 2018 full year earnings with revenue up to $1.6 billion, 34 percent up, thanks to full year operations from two Dream Cruises ships.

“With the full-year operation of two ships for Dream Cruises, we had a turnaround in the cruise segment with an EBITDA [earnings before interest, taxation, depreciation and amortisation] of $152 million in 2018 from a loss of $43 million in 2017,” said Genting Hong Kong chairman and chief executive Lim Kok Thay.

EBITDA was $72.3 million, a $233.3 million positive turnaround from a loss of $161.0 million in 2017 due to improved cruise segment results and sharply reduced losses in the shipyard segment, the company said. Operating loss was reduced by 60 percent to $141.5 million and net loss decreased by 13 percent compared with 2017.

“MV Werften, the Shipyard Segment, had improved results in 2018 with the keel laying of Crystal Endeavor and the first Global Class ship. Further improvement in 2019 is expected with even higher percentages of completion of Crystal Endeavor and the first Global Class ship. MV Werften is instrumental in the early delivery of new ships for the Group’s fleet commencing in 2020 while global orderbook of other shipyards now stretching to 2027.” he added.

Genting said its cruise operation generated $1.35 billion, up from $1 billion and a 33 percent increase. Occupancy was up to 91 percent compared to 77 percent in 2017.

Among the highlights, the World Dream replaced Genting Dream in the dual Hong Kong and Guangzhou homeports in November 2017 with the Genting Dream redeployed to the Singapore homeport.

Net Cruise Costs increased 11% in 2018 mainly due to increase in Capacity Days but Net Cruise Costs per Capacity Day was reduced by 6.5% due to efficiencies of scale, the company said.

The MV Werften shipyard, on a standalone basis, recorded an EBITDA of $3.6 million in 2018 versus a loss of $82.5 million in 2017 due to higher shipyard utilisation rate with 36 percent completion of the Crystal Endeavor and 20 percent of the first Dream Cruises Global Class ships in 2018.

Genting said that barring any unforeseen circumstances, Cruise segment results should continue to improve due to the low penetration rate in Asia and reduction in cruise capacity in China in 2019.